Buy the Blood in Crypto

China has Kim Jon Un’ed the Crypto world and fired a first strike. The rumor is the PBOC will issue its own digital token, possibly for trading with other BRICS, as a way to sidestop the USD. Maybe they will back this asset with gold? A Chinese digital currency sounds worse for the dollar than for Bitcoin. Get out your WWJD (what will Janet do) bracelets and start praying to your bearded Bernanke Buddha. The China man is sick of your American Bullshit.

In the meantime, don’t be surprised to see stories about Kim Jong Un’s rockets being powered by Bitcoin. We are approaching McCarthyism level hysteria. Crypto currencies are going to be the devil incarnate for the foreseeable future.

China has banned Google, Facebook and many other companies, services and technologies. Guess what, people in China still use those services. China issuing its own token solves nothing regarding their ghost cities, inefficient markets and socialist (communist?) government. China would be better off joining the Bitcoin party but China gonna China.

What does this all mean? There is blood and panic in the streets. Should you be selling? NO! Because you sold above $4k if you have a brain in your head. Right?

21 comments

Ethereum is at risk of dying under it’s own weight. The ETH blockchain is bloated. The price of gas to run a transaction are high with no resolution. ICOs were one of the reasons it pumped and they are going away.

That’s right…”No asset has ever had a weekly chart like this that hasn’t crashed back to earth”, ….and I mean literally …..recent “assets” ( in fact, debt ) like Zimbabwe $, Yugoslavia, Zaire come to mind..

Bubbles are fun. Being able to buy every breakout for a profit is a beautiful thing. Simple price trajectory would say that this is just a classic single asset bubble. If that’s the case, the period of unwind after the blow off top would usually be measured in years. Value would eventually be found, maybe around these prices. But, chances are the prices we see today would also be seen years from now.

So, the big question is, is this time different? Bitcoin has been in a bubble almost as many times as it has died.